GAIL Re-energizing Rajasthan’s Industrial climate through Clean Energy

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Ravi Agarwal

Levels of ambient air pollution in many of the world’s largest cities are alarming. India suffers immensely due to the rising pollution in most of the states. Mr. Ravi Agarwal, Executive Director, GAIL (India) Limited, discusses with #ProMFGMedia, the significance of natural gas pipeline infrastructure in the country.

In the wake of rising pollution in the Indian context and environmental problems caused by using fossil fuels, many scientists worldwide are focused on finding efficient alternatives. The cleaner and green fuel is the need of the hour.

Recently, Petroleum & Natural Gas Regulatory Board (PNGRB) has introduced numerous reforms. In the recent past, they have announced bidding for 228 Geographical Areas (GAs) for the development of City Gas Distribution (CGD), which is divided into 4 segments – using gas as fuel for commercial purpose, using CNG as green fuel for the automobile industry, gas used for greener technology that ensures less pollution, and domestic purpose. After the ninth and tenth rounds of CGD bidding, around 402 districts have been covered for pipeline infrastructure development, covering about 70 percent of the population.

The main challenge was to develop the gas connectivity available in the selected districts. Currently, around 17,000 km of pipeline network is operational, and around 16,000 km of pipeline is under execution, with pan-India pipeline network coverage set to be achieved in the next 2-3 years. GAIL holds the major share of about 80%-90% in the pipeline, and it would be fair to say that GAIL took a lead role in developing the infrastructure in the GAs announced districts.

Developing infrastructure is a capital-intensive process and thus requires meticulous planning to meet the demand of the identified industrial clusters and the investment zones. The gas infrastructure, being capital intensive in nature, requires financial closures, which depend upon achieving requisite targets for connecting domestic connections at an affordable price. The pipeline must meet the anchor load, which is generated by industries such as manufacturing, fertilizers, or power industry.

GAIL performed a spectacular job in building the gas pipeline at the forefront of places in the country. Due to such dedication, GAIL could fulfill the CGD dream, wherein no customer will be deprived of gas. In numerous cases, GAIL has also stepped out of its shoes and looked for alternative solutions. They have supplied LNG to the customers who are placed in locations, which lacked pipeline infrastructure. GAIL has played collaborative roles for all the gas entities that have awarded the authorization. Apart from this, they have also signed a commercial agreement with some of the authorizations, which are not part of the GAIL, to provide gas at the geographical locations with CNG stations. This will also help developing green highways pan India.

The industries require raw material – natural gas, which has in recent times emerged as the only affordable and clean solution. Since the world businesses are embracing technologies, which will reduce carbon emission, the need for natural gas has increased tremendously, as these technologies operate only on natural gas. The Government of Rajasthan’s model for earmarking sector-wise specific investment zones with a particular focus on the Ceramic Zone could not achieve the desired results. This was due to non-availability of the natural gas, which is an essential requirement for ensuring a quality product, and despite having abundant resources and proximity to the market. The Government of India should upgrade all these places with potential industrial zones in the National Gas Grid.

GAIL has pipeline infrastructure stretching at Neemrana and Kota, wherein they provide gas for power and fertilizer plants. They also provide gas to the Rajasthan state government for building Kota as the modern city. The organization has also extended the pipeline from Kota – Bhilwara-Chittorgarh corridor wherein, they are supplying gas to Vedanta. 11.00.

GAIL is undertaking collaborative efforts with the government of Rajasthan to create Rajasthan as one of the hotspots for the industries. Currently, due to a lack of infrastructure, numerous industrial clusters are not performing as desired thus impacting the overall revenue. The Government of Rajasthan and GAIL are planning to play a collaborative role in building the necessary infrastructure. Both will have to modify and rework around the government bylaws to create a sustainable environment. In the coming years, Rajasthan will be seen as a clean energy destination that will attract a great number of industries in the state.

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